Hunting PLC

FY25 turnover was just over $1 billion, roughly flat year over year. EBITDA was $135.7 million, EPS was $0.341 (up 9%), and profit after tax was $58 million. Management said gross profit, EBITDA and operating profit margins each improved by 1 point, with EBITDA margin around 13% and a stated long-term target of 15%. The order book was $358 million, down 20% from end-December 2024 mainly because KOC finished, and cash on the balance sheet ended at $63 million. Looking to FY26, management maintained guidance for EBITDA growth of $145 million to $155 million, EBITDA margin of 13% to 14%, tax rate of 25% to 28%, CapEx of about $40 million to $50 million, and free cash flow conversion of 50%.

Arthur Johnson framed FY25 as a strong execution year and said the business is positioned for a long-term upcycle driven by energy security, declining client reserve life and growing demand for oilfield services. He emphasized Hunting’s evolution into a more diversified technology company, highlighting Subsea bundling, OCTG strength, new products, and growth in non-oil-and-gas markets such as aerospace, defense, power generation and nuclear. His tone was confident and forward-looking, with repeated comments that the company is focused on where the market is going over the next 3 to 5 years, not just the next quarter.

Bruce Ferguson said the company delivered a strong set of results despite challenging markets, with EBITDA up 7% to 13% margin, EPS up 9% to $0.341, and turnover flat at just over $1 billion. He pointed to mix improvement toward higher-margin businesses, Titan margin recovery from 0% to 7%, and the EMEA restructure as key drivers, while noting the full benefit of some savings will come through in 2027. He also highlighted balance sheet discipline: working capital to sales has fallen from over 70% in 2020 to 33%, inventory was reduced by $65 million, and the company still ended with $63 million of cash after $73 million of disposals, $33 million of buybacks, $19 million of dividends and $18 million of share scheme costs.

Analysts focused on the Q2 tender pipeline, Subsea bundling, M&A, North America trends, the FY26 margin target, FES contribution, capital allocation, geothermal and aerospace. Management said the Q2 pipeline is concentrated in Brazil, the Gulf of America, West Africa, Suriname and Guyana, with dedicated sales teams now pushing bundled offerings and a big chunk of the pipeline tied to Subsea, OCTG and FES. On M&A, Arthur Johnson said Hunting remains disciplined and strategic, willing to walk away in due diligence if fit or quality is not right, but still actively screening opportunities. On margins, management said FY26 guidance is achievable because OCTG pricing is stable, subsea backlog is improving, Titan should continue to outperform, and the new cost savings will help offset softness in electronics and EMEA.